SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

LITIGATION RELEASE NO. 17571 / JUNE 17, 2002

JAMES W. SPRATT III PERMANENTLY ENJOINED FROM VIOLATING THE ANTIFRAUD, ANTITOUTING AND REGISTRATION PROVISIONS OF THE FEDERAL SECURITIES LAWS AND BARRED FROM PARTICIPATING IN AN OFFERING OF PENNY STOCK

The Securities and Exchange Commission ("Commission") announced today that, on December 31, 2001, the United States District Court for the Middle District of Florida entered a final judgment against James W. Spratt III ("Spratt"). Without admitting or denying the Commission's allegations, Spratt consented to the entry of a judgment which permanently enjoins him from violating Sections 5(a), 5(c), 17(a) and 17(b) of the Securities Act of 1933 ("Securities Act"), Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 ("Exchange Act"), and Exchange Act Rule 10b-5. The judgment also requires Spratt to pay disgorgement and prejudgment interest in the amount of $629,000, and a civil penalty of $125,000. In a related administrative action, without admitting or denying the Commission's findings, Spratt consented to the entry of a Commission order barring him from participating in any offering of penny stock.

The Commission alleged that Spratt, while a principal associate of Corporate Relations Group, Inc. ("CRG"), a public relations firm and co-defendant in the civil injunctive action, violated the antifraud, antitouting and registration provisions of the securities laws by participating in a fraudulent scheme in which CRG acquired control of large blocks of securities from small companies at a steep discount, touted the securities to the public, and then sold the securities, which were neither registered with the Commission nor exempt from registration.

The Commission's civil action against CRG and other defendants is proceeding in the Middle District of Florida. Litigation Release No. 16294 (September 27, 1999).